ERC-1462: Base Security Token.

[xlab]

An extension to ERC-20 standard token that provides compliance with securities regulations and legal enforceability.

Abstract

This EIP defines a minimal set of additions to the default token standard such as ERC-20, that allows for compliance with domestic and international legal requirements. Such requirements include KYC (Know Your Customer) and AML (Anti Money Laundering) regulations, and the ability to lock tokens for an account, and restrict them from transfer due to a legal dispute. Also the ability to attach additional legal documentation, in order to set up a dual-binding relationship between the token and off-chain legal entities.

The scope of this standard is being kept as narrow as possible to avoid restricting potential use-cases of this base security token. Any additional functionality and limitations not defined in this standard may be enforced on per-project basis.

Join the discussion

https://ethereum-magicians.org/t/erc-1462-base-security-token/1501

[kenmistry]

For instance, ERC-1411 uses dependency on ERC-1410 but it falls out of the "security tokens" scope.

hi there, i came across this standard that can facilitate the attachment of a document on a token. i am wondering how was the "security tokens" scope defined in the statement above, and was it because a feature is deemed missing or not fully developed. i would be happy to go through any reading material for this. many thanks!

[xlab]

@kenmistry hi, nice find, I actually wrote this statement because at the moment of writing it was not clear why tokens must be partially fungible. Why do we need tranches and how they are related to securities. From the current perspective I understand, that this might be useful for post-sale compliance in case of "restricted" securities obtained trough Reg D, see Rule 144.

I still think that such regulations can be respected without this feature. The flow is tightly integrated with offline processes, it's much easier to keep a standalone registry contract that keeps track of tranches, instead of embedding this logic into token itself.

Rule 144